Oil prices could remain volatile over the short term with traders’ attention constantly shifting between demand and supply sides.
The efforts led by Saudi Arabia and Russia to cut production levels have been able to push prices out of their range and took the market to the upside this month and could continue to provide strong upside support over the medium term.
Wael Makarem, Senior Market Strategist – MENA at Exness said, “On the demand side, however, the Chinese economic recovery remains softer than previously expected and could continue to weigh on expectations.
“Oil markets were also impacted by weaker-than-expected declines in US crude inventories although economic sentiment improved overall.
“In this regard, traders could focus on economic data from the US next week with the release of US GDP growth figures while the Federal Reserve is expected to decide on interest rates.”